There are three TDCloud goals for this year — enable, educate and execute.

Roughly four years ago, Tech Data saw potential market changes that “scared” the company. IDC and other market predicters were suggesting private cloud will take 28 percent of the IT budget within a few years. Tech Data had to change.

Customers no longer refresh on every software update. 

With cloud, customers are always on the latest release.

Once you get customers onto your cloud services it’s really sticky.

In the old days, customers too all the IT risk and spent up-front.

At the end of the first year of a cloud service, customers have only spent 10 percent of the total value of what an on-premises solution would have been. Up front that’s painful. “If we get there we [the channel] makes money in the long term.”

In response, Tech Data developed the Cloud Playbook, which includes four components.

First, every playbook needs Technology Enablers (automated recurring billing, APIs for instant provisioning, etc.). Tech Data invested “tens of millions of dollars” in SAP and StreamOne to build out its next-generation IT platforms for partners, including TDCloud.

Second, every playbook needs People and Expertise. Recruit and train cloud solution expert. If there’s a $2,000 monthly cloud deal or the $100,000 on-premises server deal, you need to really think about compensation models to make sure cloud deals get closed. The cloud is like soccer: We’re starting to figure out where each of us belongs on the field, rather than crowding the ball like amateurs.

Third, every playbook needs Vendor Readiness and Enablement. Tech Data is vetting solutions for channel partners. Selected vendors have to (A) have strong cloud products and (B) a deep respect for the channel. Side note: Keep an eye on Big Data and the cloud, he noted.

Fourth, every playbook needs Customer Enablement: There have to be education programs, bundles, and a community to inspire thought leadership.

Archiving, data storage and email are the top first-moves to the cloud.

“Get ready for five years of hybrid cloud technology. After that, we’ll just talk about cloud as IT.”

StreamOne (Tech Data’s underlying IT technology) is an IT system and he conceded it’s not perfect. But the real value of TDCloud is to help partners solve end-user needs with solutions that scale.